THE Bangko Sentral ng Pilipinas (BSP) has issued a circular letter prohibiting the Rural Bank of Maigo (Lanao del Norte) Inc. from doing business in the country. The BSP also ordered the Philippine Deposit Insurance Corp. (PDIC) to take over the bank’s operations.
“Notice is hereby given that the MB [Monetary Board], in its resolution 1484.A dated September 13, 2018, decided to prohibit the Rural Bank of Maigo [Lanao del Norte] Inc., from doing business in the Philippines pursuant to Section 30 of Republic Act 7653,” the BSP said in its Circular Letter 2018-065.
The MB also directed the PDIC as receiver to proceed with the liquidation of the bank and to take over its operations on September 14.
The Rural Bank of Maigo is a single-unit rural bank in Poblacion, Maigo, Lanao del Norte.
As of June 30, the bank had 2,150 deposit accounts with total deposit liabilities of P73.25 million and total insured deposits amounting to P64.06 million, equivalent to 87.4 percent of total deposits.
The PDIC has assured depositors that all valid deposits and claims shall be paid up to the maximum deposit insurance coverage of P500,000.
The BSP said it asks all depositors and borrowers of the bank to attend the Depositors-Borrowers’ Forum, which will be held in a venue near the premises of the bank on September 24.
The MB exercises the functions of the BSP, including the supervision of the financial system, among others. The BSP governor sits as its chairman, with five members from the private sector and one member from the Cabinet.